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Pakistan PM amid economic crisis

January 16, 2023

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Pakistan PM Shehbaz Sharif

Photo : PTI

Lahore: With Pakistan’s economic situation facing severe headwinds, its Prime Minister Shehbaz Sharif has said that it is a matter of shame that a country, which is a nuclear power, has to beg and seek financial help.

Sharif said that it was embarrassing for him to ask for more loans from friendly countries, stressing that it was not a permanent solution for the cash-strapped country’s financial crisis.

He made the statement while addressing the passing out ceremony of probationary officers of the Pakistan Administrative Service (PAS) in Lahore in the capital of Punjab province on Saturday.

The Pakistan PM said that it was really regretful that during the past 75 years, different governments — whether headed by political leadership or military dictators — could not address the economic challenges, Geo News reported.

He said that seeking foreign loans was not the right solution to address Pakistan’s economic issues as the loans would have to be eventually returned.

Pakistan has been witnessing its worst economic crisis with inflation being forecast to stay high between 21-23 per cent and the country’s fiscal deficit widening by more than 115 per cent in the first four months (July-October) of the current fiscal year, PTI reported.

The country – with an economy of Rs 350 billion – is getting financial support from mainly two key countries – Saudi Arabia and the UAE.

Last week, UAR President Sheikh Mohammed bin Zayed announced a grant of a further USD 1 billion loan to Pakistan during Sharif’s visit to the country.

Several factors including the political crisis, plummeting rupee, inflation, a global energy crisis, last year’s devastating floods are behind the deteriorated economic situation in the country.

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